Section 8 Fair Market Rent (FMR) for ZIP 93552 - 2027

Investment Score for ZIP 93552

Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)

FY 2027 Fair Market Rent Rates

Unit Size	Monthly FMR
Studio	$2,100
1 Bedroom	$2,350
2 Bedrooms	$2,900
3 Bedrooms	$3,680
4 Bedrooms	$4,120
5 Bedrooms	$4,779
6 Bedrooms	$5,352
7 Bedrooms	$5,780
8 Bedrooms	$6,069

Investment Analysis by Bedroom Size

Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)

Bedrooms	Monthly FMR	Median Price	1% Rule	Grade
2BR	$2,900	$386,071	0.75%	D
3BR	$3,680	$463,182	0.79%	D
4BR	$4,120	$521,578	0.79%	D
5BR	$4,779	$593,732	0.8%	C

Demographics & Housing Statistics

U.S. Census Bureau data (2024)

### Market Analysis for ZIP Code 93552 (Palmdale, CA) #### Section 8 Voucher Dynamics The Fair Market Rent (FMR) for ZIP code 93552 in Palmdale, CA, for 2026 is set at $2570 for a two-bedroom unit. This amount represents 35.9% of the median household income of $85,954. However, the actual rental market in Palmdale is significantly higher. The Zillow median price for a two-bedroom unit is $388,365, which translates to a price-to-FMR ratio of 12.6x. This means that the average rent for a two-bedroom unit would be around $3200-$3300 based on typical rental rates derived from property values. Given that the FMR is $2570, tenants using Section 8 vouchers would face significant constraints in finding suitable housing within their budget. Landlords may be hesitant to accept vouchers due to the high discrepancy between the FMR and the actual market rent, potentially leading to a limited pool of available units for voucher holders. #### Affordability & Renter Profile With a population of 42,639, Palmdale has a relatively low percentage of renters at 22.9%, indicating that it is primarily a homeownership-focused area. The occupancy rate of 97.6% suggests that the rental market is quite tight, with very few vacant units available. This tightness can contribute to higher rents and competition among potential tenants. Given the median household income of $85,954, the majority of residents likely have stable jobs and financial situations, making them less reliant on Section 8 vouchers. However, the 22.9% of renters could include families and individuals who are struggling to afford market-rate housing, particularly those with lower incomes who might benefit from the assistance of Section 8 vouchers. #### Investor Angle From an investor perspective, the ZIP code 93552 presents a challenging environment for cash flow positivity at the FMR level. With the FMR for a two-bedroom unit being $2570, and the actual market rent likely exceeding $3200-$3300, landlords who accept Section 8 vouchers may find themselves under-renting their properties. This can result in negative cash flow, especially when considering the costs associated with maintaining and managing rental properties. The investment grade for this ZIP code would be considered low, given the mismatch between the FMR and the actual market rent. Investors looking to maximize returns may need to consider alternative strategies, such as targeting properties where the rent is closer to the FMR or focusing on areas with higher demand for affordable housing. #### Specific Actionable Insights 1. **Target Lower-Rent Properties**: Investors should focus on acquiring properties that are priced closer to the FMR. For example, a one-bedroom unit with an FMR of $2060 might be more attractive for Section 8 tenants and could provide better cash flow if rented at or near the FMR. Additionally, there are fewer constraints on finding units for one-bedroom vouchers compared to two-bedroom units. 2. **Consider Multi-Family Developments**: Given the tight rental market and the high demand for affordable housing, developing multi-family units could be a viable strategy. By creating a mix of one-bedroom and two-bedroom units, investors can cater to both voucher holders and other renters, potentially balancing out the lower rents from Section 8 vouchers with higher rents from market-rate units. #### Bottom Line Based on the provided data, the ZIP code 93552 (Palmdale, CA) is not recommended for Section 8-focused investors. The significant gap between the FMR and actual market rents makes it difficult to achieve positive cash flow, and the tight rental market may limit the number of available units for voucher holders. Therefore, the recommendation is to **skip** this ZIP code for Section 8 investments and consider areas with a more favorable balance between FMR and market rents.

Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).

About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.